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TOPIC: Mortgage renewal!

Mortgage renewal! 1 day 13 hours ago #1

  • JacksonM
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So far, my mortgage was sold once, but it was within the same company. For some odd reason, the loan was processed and approved in another city, then sold to the location in the city where I live. I've never quite figured it out, but from there, they've held on to it.
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Mortgage renewal! 1 day 20 hours ago #2

  • FrankN
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Mostly because the original banks are in the buy and hold business. They originate the loans and then sell it off to investors/other banks who want the earning asset. It also frees their balance sheet up to take on more mortgage loans.
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Mortgage renewal! 2 days 23 hours ago #3

  • Lexie
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FrankN wrote:
Lexie wrote:
What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.

This happens all the time. Depending on the loan, it is almost guaranteed to change hands atleast once. Your basic terms will remain the same (term, interest rate, etc.). The only major change will be where to send your payment.[/quote

Why do they do that FRANKN? Everything remained basically the same but like JGIBBS, it's a little unnerving to change in mid stream.
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Mortgage renewal! 3 days 10 hours ago #4

  • JGibbs
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Wanderer wrote:
GADS! My loan was just transferred again. Five times in seven years. The worst part is the new financial institution is Wells Fargo. Cannot understand why a loan gets moved around every sixteen months for me? Is it the new group thinks they can get me to refinance? Very nerve racking as I sure don't want to be late on any payments.
I'm sure you're positively delighted to work with Wells Fargo. There is no other company with better ethics, so you're in good hands. Really though, I wonder why your mortgage has changed hands so many times. Has the value of your home changed dramatically since you got the mortgage?
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Mortgage renewal! 5 days 13 hours ago #5

  • Wanderer
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Each lender has required a new user name and password (which is good for security and I change it).
Last Edit: 5 days 13 hours ago by Wanderer.
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Mortgage renewal! 5 days 15 hours ago #6

  • FrankN
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Wow that is more than I would expect! Have you had to create a new username/password at a new website every time it has switched?
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Mortgage renewal! 6 days 12 hours ago #7

  • Wanderer
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GADS! My loan was just transferred again. Five times in seven years. The worst part is the new financial institution is Wells Fargo. Cannot understand why a loan gets moved around every sixteen months for me? Is it the new group thinks they can get me to refinance? Very nerve racking as I sure don't want to be late on any payments.
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Mortgage renewal! 6 days 15 hours ago #8

  • FrankN
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Lexie wrote:
What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.

This happens all the time. Depending on the loan, it is almost guaranteed to change hands atleast once. Your basic terms will remain the same (term, interest rate, etc.). The only major change will be where to send your payment.
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Mortgage renewal! 2 weeks 23 hours ago #9

  • Lexie
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What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.
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Mortgage renewal! 2 weeks 2 days ago #10

  • Moneyes
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FrankN wrote:
Wanderer wrote:
A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.

I think 1% rule is a useful guideline. It also depends on what your new term is. For example, if you had a $500K loan and plan to be in that house for 10+ years, and a refi offered you a 0.5% reduction in interest, I would take that deal any day.

That is a very good point. Run the numbers and you'll see that .5% and 1% can equal the same amount of "savings" when all other numbers fall into place.
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Mortgage renewal! 4 weeks 14 hours ago #11

  • FrankN
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Wanderer wrote:
A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.

I think 1% rule is a useful guideline. It also depends on what your new term is. For example, if you had a $500K loan and plan to be in that house for 10+ years, and a refi offered you a 0.5% reduction in interest, I would take that deal any day.
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Mortgage renewal! 1 month 5 days ago #12

  • Wanderer
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A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.
Last Edit: 1 month 5 days ago by Wanderer.
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Mortgage renewal! 1 month 5 days ago #13

  • Lexie
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There is so much paperwork involved in doing this!!!!! I totally agree with Moneyes that you should check with your current mortgage company for a lower interest rate. If they won't give one then I hope you are saving a lot more than a couple of percent by transferring.
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Mortgage renewal! 1 month 2 weeks ago #14

  • JGibbs
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Moneyes wrote:
The only way to do this and save on processing fee's is to have your current lender simply re-structure the current loan. I have done that twice on car loans because, as your re-payment history remains solid and your credit score increases, you are due a lower interest rate. So if your current lender won't do it, lower your interest rate, there are scores of other lenders who will.
How do you call to make it happen, the dealer or the lender? Why would they be willing to do that? If you're paying less overall, what's in it for them? I love the idea, just don't understand how it works.
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Mortgage renewal! 1 month 2 weeks ago #15

  • FrankN
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Brandon01 wrote:
Hi,

Please help me know the details of mortgage renewal costs. I am planning to consult a new lender for further processes. So, there would definitely be a setup fee for that. But, I don't know whether there are any other related costs.

Does anyone have any previous experience in this? And what are the formalities while switching a lender? Is it that much complicated? [Link Removed]

Hope someone could help me. Thanks in advance!

Each bank has its own fees and processes, but there is usually no costs to inquire. I would get a couple of quotes to get you the best rate. A few large, national banks, as well as a few local credit unions.
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